A special operation by the National Board of Revenue (NBR) has revealed evidence of almost Tk 9 crore in potential revenue evasion by United Tobacco Industries Ltd, a cigarette manufacturer based in Ishwardi.

The drive was carried out by a team from the VAT Intelligence and Investigation Directorate following information obtained from confidential sources, according to a NBR press release.

Although the company possessed a valid VAT registration, investigators found that it had long been concealing its formal production activities while secretly manufacturing and marketing cigarettes—thereby evading a substantial amount of revenue.

During the raid, the VAT intelligence team seized 634,590 sticks of cigarettes bearing counterfeit banderols, with a market value of more than Tk 38 lakh. Against these products, the government was deprived of approximately Tk 29 lakh in revenue, officials said.

Investigators also recovered 1,029,000 pieces of unused counterfeit banderols/stamps, which—had they been used—could have facilitated additional revenue evasion amounting to over Tk 8.5 crore, according to NBR estimates.

Although the company had legally collected 322,500 pieces of authentic banderols, it reportedly chose not to use them. Instead, it continued producing and selling cigarettes using counterfeit banderols to avoid paying due taxes.

All seized cigarettes and materials have been taken into custody following legal procedures, and formal action against the company is already under way.

Officials said a full investigation report will be submitted soon based on documents recovered during the raid. The relevant VAT Commissionerate has also been instructed to intensify monitoring of the company’s production and sales activities.